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Government Defers Approval of Motorway Project

Islamabad: The federal government postponed clearance of the Rs 192 billion Hyderabad-Sukkur motorway project due to planned changes in its financing model. Instead of relying on private sector funding for the project’s construction, the new model now asks for Rs 76 billion from the budget.

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The Public Private Partnership (PPP) Authority was tasked with reviewing the Rs. 76 billion budget request after the Central Development Working Party (CDWP), which has the authority to approve public sector projects, returned the proposal back to it.

A fresh summary for the building of the Hyderabad-Sukkur motorway using a combination of public and private money has been submitted by the Ministry of Communication; this project was not included in the plan that the government authorized in April of last year.

The 306 km road will be built, operated, and transferred as part of the Rs 191.5 billion public-private partnership project. The current estimate for the federal government’s portion is Rs. 75.9 billion, or 39.6%. The federal government’s first stake was only 0.7%, or Rs. 1.1 billion.

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The CDWP recommended that Ecnec approve the Rs 89.5 billion Punjab Rural Sustainable Water Supply and Sanitation Project. The World Bank will lend money to finish the project.

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